CryptoEducation: What Is Halving?

17.08.2023

Halving (from the word "to halve") refers to the process of cutting the block reward in half — meaning that miners receive 50% less cryptocurrency for verifying transactions. This mechanism is built into many blockchains. For example, in Bitcoin, halving occurs approximately every 4 years. Why Does Halving Matter?The key goal of halving is to control inflation by reducing the issuance of new coins over time.It makes the cryptocurrency more scarce, which can increase its perceived value. Does It Affect Price?Historically, halving has been followed by a rise in demand and often a significant price increase.Investors tend to buy in anticipation of a supply shock, hoping for strong returns. This increased activity fuels market interest and can drive prices upward — both before and after the halving event.